lubuntu 15.10
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Disable nomodeset, the Live usb will not hang.

The newest kernels have moved the video mode setting into the kernel. So all the programming of the hardware specific clock rates and registers on the video card happen in the kernel rather than in the X driver when the X server starts.. This makes it possible to have high resolution nice looking splash (boot) screens and flicker free transitions from boot splash to login screen. Unfortunately, on some cards this doesnt work properly and you end up with a black screen. Adding the nomodeset parameter instructs the kernel to not load video drivers and use BIOS modes instead until X is loaded.

Debian Wheezy
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1) After base install and reboot, we can type commands but cannot see what we have typed because of missing firmware.
(most parts of the screen cover by white screen)
The solution is rebooting to a live cd (http://www.playoss.com/node/179)
, mount internal hdd
, download http://packages.debian.org/firmware-linux-nonfree
, and extract the radeon to {mount-directory-of-debian-root}/lib/firmware